A common way that analysts and investors measure the performance of a company selling goods is by using financial ratios. One ratio that is useful for evaluating a company's effectiveness in utilizing ...

Rachel Hanley is a contributing writer for Investopedia with over six years of experience developing content for financial professionals, institutions, and marketing agencies. Suzanne is a content ...

Financial ratios are an indicator of health for any business. They may seem esoteric, but to lenders and investors they tell the true story of a company's financial strength and ability to weather an ...